Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 08 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

L&T Technology Services Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 7, 2024, 11:23 pm

Market Cap 54,387 Cr.
Current Price 5,146
High / Low6,000/4,107
Stock P/E41.6
Book Value 504
Dividend Yield0.97 %
ROCE33.6 %
ROE26.4 %
Face Value 2.00
PEG Ratio4.38

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for L&T Technology Services Ltd

Competitors of L&T Technology Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
eMudhra Ltd 7,316 Cr. 882928/41594.7 79.20.14 %17.7 %14.4 % 5.00
BNR Udyog Ltd 22.6 Cr. 75.5118/36.619.0 34.10.00 %63.6 %53.8 % 10.0
BGIL Films & Technologies Ltd 5.57 Cr. 4.9210.3/1.89 17.10.00 %4.44 %3.46 % 10.0
Aurum Proptech Ltd 550 Cr. 189250/117 61.90.00 %12.0 %27.1 % 5.00
Ace Engitech Ltd 8.92 Cr. 104104/11.9 1.700.00 %23.6 %25.2 % 10.0
Industry Average9,820.25 Cr739.7535.63191.570.43%18.81%17.48%7.47

All Competitor Stocks of L&T Technology Services Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,4011,4401,5181,6081,6881,7562,0062,2822,1572,3712,3012,3862,422
Expenses1,1251,1471,2011,2581,3201,3761,5981,8441,7211,8901,8491,9111,934
Operating Profit276293318349367380408437436480453476488
OPM %20%20%21%22%22%22%20%19%20%20%20%20%20%
Other Income49354429374241387450484162
Interest11121111111011111211121313
Depreciation62545553535359595957576872
Profit before tax251261296314340359379406439462431436466
Tax %25%25%27%27%27%27%27%26%32%26%28%28%28%
Net Profit187195217231250263276301298341312316337
EPS in Rs17.7218.5220.5821.8723.5924.8326.0928.4128.1132.2029.4429.8431.79

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,6193,0663,2483,7475,0785,6195,4506,5708,0149,480
Expenses2,2202,5472,6633,1724,1644,5094,4425,1556,3037,584
Operating Profit3995195865769151,1101,0071,4151,7111,896
OPM %15%17%18%15%18%20%18%22%21%20%
Other Income258458193223209154152208202
Interest322223646444449
Depreciation48596289104183218214232254
Profit before tax3725425796781,0311,1008971,3091,6441,795
Tax %16%23%27%25%26%25%26%27%29%
Net Profit3114194255077688226669611,1741,306
EPS in Rs10.3655.8841.7849.3973.6178.3363.1490.68110.77123.29
Dividend Payout %50%26%29%32%29%27%35%39%41%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)34.73%1.43%19.29%51.48%7.03%-18.98%44.29%22.16%
Change in YoY Net Profit Growth (%)0.00%-33.29%17.86%32.19%-44.45%-26.01%63.27%-22.13%

L&T Technology Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:14%
3 Years:21%
TTM:8%
Compounded Profit Growth
10 Years:%
5 Years:11%
3 Years:26%
TTM:5%
Stock Price CAGR
10 Years:%
5 Years:27%
3 Years:2%
1 Year:8%
Return on Equity
10 Years:%
5 Years:26%
3 Years:26%
Last Year:26%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital3003002020212121212121
Reserves27661,4651,9162,4582,7483,4524,1414,4145,306
Borrowings969196102707030480477454659
Other Liabilities5076816446968021,5041,1131,4383,2952,497
Total Liabilities1,7781,9422,2322,7023,3524,3035,0666,0778,1848,483
Fixed Assets5696216147097801,1741,2821,2831,3031,613
CWIP01420091210613
Investments0561952215756421,5151,4782,2841,493
Other Assets1,2081,2521,4211,7721,9972,4792,2573,3074,5905,365
Total Assets1,7781,9422,2322,7023,3524,3035,0666,0778,1848,483

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 2895443884098066381,3321,0061,3131,493
Cash from Investing Activity -667-176-178-196-509-222-1,005-448-578-233
Cash from Financing Activity 464-383-222-132-245-406-363-498-445-658
Net Cash Flow86-15-12815210-3660290602

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-570.00323.00484.00506.00845.00-29.00-479.00-476.00-453.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days96868094769083948982
Inventory Days
Days Payable
Cash Conversion Cycle96868094769083948982
Working Capital Days67416077576849521443
ROCE %43%41%38%45%43%27%31%36%34%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters74.23%74.15%73.93%73.90%73.88%73.87%73.85%73.85%73.80%73.77%73.75%73.74%
FIIs8.92%9.50%9.23%7.14%6.34%6.04%7.22%6.69%5.31%5.89%5.63%5.52%
DIIs6.68%6.14%5.42%5.20%4.08%8.00%7.69%8.41%10.37%10.77%11.33%12.09%
Public10.17%10.21%11.41%13.76%15.69%12.10%11.24%11.06%10.51%9.55%9.29%8.65%
No. of Shareholders1,25,9201,46,8931,77,8392,22,1962,76,7793,05,8812,88,9612,97,5692,84,6462,66,5712,57,3962,43,374

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Dividend Yield Fund320,0002.57133.9783,4212024-10-06283.6%
UTI Mid Cap Fund228,0451.0995.4883,4212024-10-06173.37%
PGIM India Midcap Opportunities Fund228,0001.0595.4683,4212024-10-06173.31%
SBI Magnum Equity ESG Fund200,0001.7283.7383,4212024-10-06139.75%
ICICI Prudential Technology Fund148,2160.5762.0583,4212024-10-0677.67%
Motilal Oswal Focused Fund129,3813.2854.1783,4212024-10-0655.09%
HDFC Capital Builder Value Fund - Regular Plan120,7940.950.5783,4212024-10-0644.8%
SBI Retirement Benefit Fund - Aggressive Plan111,0002.6446.4783,4212024-10-0633.06%
Samco Flexi Cap Fund90,0005.1137.6883,4212024-10-067.89%
Edelweiss Balanced Advantage Fund83,4210.3734.9383,4212024-10-060%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)123.34110.8090.9263.3278.56
Diluted EPS (Rs.)123.34110.4890.7462.9077.70
Cash EPS (Rs.)148.86133.23111.3784.2796.20
Book Value[Excl.RevalReserv]/Share (Rs.)504.51470.99395.85331.73265.60
Book Value[Incl.RevalReserv]/Share (Rs.)504.51470.99395.85331.73265.60
Revenue From Operations / Share (Rs.)910.12759.58622.72519.02537.71
PBDIT / Share (Rs.)200.59181.87148.56110.58126.28
PBIT / Share (Rs.)174.97159.92128.2489.79108.78
PBT / Share (Rs.)170.17155.80124.0985.46105.28
Net Profit / Share (Rs.)123.24111.2991.0563.4878.70
NP After MI And SOA / Share (Rs.)122.99110.8890.7163.1778.33
PBDIT Margin (%)22.0423.9423.8521.3023.48
PBIT Margin (%)19.2221.0520.5917.3020.22
PBT Margin (%)18.6920.5119.9216.4619.57
Net Profit Margin (%)13.5414.6514.6212.2314.63
NP After MI And SOA Margin (%)13.5114.5914.5612.1714.56
Return on Networth / Equity (%)24.4723.6222.9919.0929.56
Return on Capital Employeed (%)31.1631.2228.7123.7234.82
Return On Assets (%)15.3516.9115.7113.0719.02
Total Debt / Equity (X)0.000.000.000.000.01
Asset Turnover Ratio (%)1.251.131.091.091.39
Current Ratio (X)2.463.403.143.192.80
Quick Ratio (X)2.453.403.143.192.80
Dividend Payout Ratio (NP) (%)38.0927.0737.9633.1326.70
Dividend Payout Ratio (CP) (%)31.5322.6031.0124.9321.82
Earning Retention Ratio (%)61.9172.9362.0466.8773.30
Cash Earning Retention Ratio (%)68.4777.4068.9975.0778.18
Interest Coverage Ratio (X)41.7744.1135.8625.5236.15
Interest Coverage Ratio (Post Tax) (X)26.6627.9922.9815.6523.53
Enterprise Value (Cr.)56720.8534950.1853166.1327652.8011940.38
EV / Net Operating Revenue (X)5.884.368.095.072.12
EV / EBITDA (X)26.6818.2233.9223.829.05
MarketCap / Net Operating Revenue (X)6.024.458.195.122.16
Retention Ratios (%)61.9072.9262.0366.8673.29
Price / BV (X)10.907.2012.938.034.39
Price / Net Operating Revenue (X)6.024.458.195.122.16
EarningsYield0.020.030.010.020.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of L&T Technology Services Ltd as of October 8, 2024 is: ₹5,588.82

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 8, 2024, L&T Technology Services Ltd is Undervalued by 8.61% compared to the current share price ₹5,146.00

Intrinsic Value of L&T Technology Services Ltd as of October 8, 2024 is: ₹6,119.56

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 8, 2024, L&T Technology Services Ltd is Undervalued by 18.92% compared to the current share price ₹5,146.00

Last 5 Year EPS CAGR: 9.50%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 33.80%, which is a positive sign.
  2. The company has higher reserves (2,666.80 cr) compared to borrowings (350.70 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.90 cr) and profit (307.30 cr) over the years.
  1. The stock has a high average Working Capital Days of 52.80, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 87.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in L&T Technology Services Ltd:
    1. Net Profit Margin: 13.54%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 31.16% (Industry Average ROCE: 18.81%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 24.47% (Industry Average ROE: 17.48%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 26.66
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.45
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 41.6 (Industry average Stock P/E: 28.13)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

L&T Technology Services Ltd. is a Public Limited Listed company incorporated on 14/06/2012 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72900MH2012PLC232169 and registration number is 232169. Currently Company is involved in the business activities of Other information technology and computer service activities n.e.c. Company’s Total Operating Revenue is Rs. 5873.70 Cr. and Equity Capital is Rs. 21.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Enabled ServicesL&T House, Mumbai Maharashtra 400001investor@ltts.com
http://www.ltts.com
Management
NamePosition Held
Mr. A M NaikFounder Chairman
Mr. S N SubrahmanyanVice Chairman
Mr. Amit ChadhaManaging Director & CEO
Mr. Abhishek SinhaWhole Time Director & COO
Dr. Keshab PandaNon Executive Director
Mr. Sudip BanerjeeIndependent Director
Mr. Narayanan KumarIndependent Director
Mr. Luis MirandaIndependent Director
Ms. Apurva PurohitIndependent Director
Mr. R ChandrasekaranIndependent Director
Ms. Aruna SundararajanIndependent Director
Mr. Alind SaxenaPresident & Wholetime Director

FAQ

What is the latest fair value of L&T Technology Services Ltd?

The latest fair value of L&T Technology Services Ltd is ₹5588.82.

What is the Market Cap of L&T Technology Services Ltd?

The Market Cap of L&T Technology Services Ltd is 54,387 Cr..

What is the current Stock Price of L&T Technology Services Ltd as on 08 October 2024?

The current stock price of L&T Technology Services Ltd as on 08 October 2024 is ₹5,146.

What is the High / Low of L&T Technology Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of L&T Technology Services Ltd stocks is 6,000/4,107.

What is the Stock P/E of L&T Technology Services Ltd?

The Stock P/E of L&T Technology Services Ltd is 41.6.

What is the Book Value of L&T Technology Services Ltd?

The Book Value of L&T Technology Services Ltd is 504.

What is the Dividend Yield of L&T Technology Services Ltd?

The Dividend Yield of L&T Technology Services Ltd is 0.97 %.

What is the ROCE of L&T Technology Services Ltd?

The ROCE of L&T Technology Services Ltd is 33.6 %.

What is the ROE of L&T Technology Services Ltd?

The ROE of L&T Technology Services Ltd is 26.4 %.

What is the Face Value of L&T Technology Services Ltd?

The Face Value of L&T Technology Services Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in L&T Technology Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE